Refinancing Home Mortgage
In: Mortgage Payment
7 Nov 2010Say $ 700/month payment, pay the mortgage for $ 700 and $ 700 paid earlier for the primary in a month on the interest and the loan?
Yes, you can, but curious if you duplicate payments, do you describe, it takes less than 15 years to repay the mortgage. The key to this is that when you make your monthly payment, two checks, one of the regular payment and send your check for the second “double” payment. When Please send your (you can send both at once) on the check to “double” to pay or write a note in a short motivation letter to explain “double” payment must be applied to principal only. What you do is, is essentially a regular monthly check on a piece of interest and a small part of it is used to reduce the principal. Check the “double” payment of principal of the mortgage is reduced. Sun as the years pass, you pay back the mortgage in the amount of capital much faster than if just a single payment regularly. First, however, to check with your lender to see whether to enable it. Depending on how your mortgage is written, you can not do, but in general it is completely legal. It’s the same concept / similar to an additional payment at the end of each calendar year to make during the same amount of periodic payments – that a further check is applied to the principal and, over time it will also cause the mortgage in 30 years to pay. If you can afford it and if your bank allows it, definitely go for the road 15 years, although interest rates so low these days that with this extra money into your 401K or distribute something like that. If for some reason not able to duplicate payments, you can do as long as you stay current on the regular monthly payment. Good luck! Postscript My answer applies to loans made in California – I do not know what the rest of the world in this field.
This is about mortgage information questions.
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